Recently, I was asked a question that many business owners quietly wonder: “Are you the type of accountant who insists on keeping a receipt for every purchase?” My answer was simple: You are the one who must be able to stand up in court or in front of HMRC and prove that an expense was wholly and exclusively for business. Not me. Under UK tax law, HMRC requires businesses to keep records of all receipts and expenses, along with evidence showing what the expenditure was for an

Keeping your business finances in order can feel overwhelming. But with the right approach, bookkeeping becomes a manageable, even enjoyable, part of running your company. I want to share some practical, straightforward advice to help you stay on top of your accounts and keep your business thriving. Why Bookkeeping Essentials for Businesses Matter Bookkeeping is the backbone of any successful business. It’s not just about recording transactions; it’s about understanding your

Small companies and micro-entities will soon face the biggest change to Companies House accounts filing requirements in many years. Following confirmation from the government in June 2026, new rules introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCT Act) will take effect from April 2028. These reforms are designed to improve the quality, transparency and reliability of information held at Companies House, while helping government agencies tackle fra

Managing company car tax can feel like a maze, especially when you’re running a small private limited company. But it doesn’t have to be complicated. With the right approach, you can keep your tax bills manageable and avoid unnecessary stress. I’m here to share practical company car tax tips that will help you navigate this area confidently. Understanding Company Car Tax Basics Before diving into tips, it’s important to understand how company car tax works in the UK. When you

The way employers report taxable benefits is changing. From April 2027, most benefits in kind, including common items such as company cars and private medical insurance, will need to be processed through monthly payroll rather than reported mainly after the tax year on form P11D. That is a big operational shift. It affects payroll teams, HR, finance, fleet managers, benefits providers and employees who are used to seeing benefits handled outside monthly pay. The core idea is

HMRC is no longer leaving every Making Tax Digital for Income Tax sign-up to the taxpayer. If HMRC believes someone should be within MTD IT and they have not registered, it may start the process for them. That matters because automatic enrolment does not remove the obligations. It simply means HMRC thinks the taxpayer falls within the rules and is being brought into the system. The next step is still practical: checking the details, using compatible software, keeping digital

The Government has announced significant changes to Individual Savings Accounts (ISAs) from 6 April 2027. The reforms are designed to encourage more investment in the UK economy and reduce the amount of money held in tax-free cash savings. While the overall ISA allowance remains unchanged, the way you can use it will be different, particularly if you're under the age of 65. Here's what you need to know. The Overall ISA Allowance Stays at £20,000 The annual ISA allowance will

Ask yourself these questions about the place you travel to: 📍 How often do you go there? ☐ Do you attend the same place regularly (daily, weekly, monthly)? ☐ Is there a pattern or routine to your visits? 👉 If yes, HMRC are more likely to see it as permanent. ⏳ How long has it lasted (or will it last)? ☐ Have you worked there for more than 24 months, or do you expect to? ☐ Do you spend 40% or more of your working time there? 👉 If yes to both, it is very likely permanent und

From 6 April 2026, UK employees working from home can no longer claim a tax deduction for homeworking expenses through Self Assessment or an employment expenses claim route. The key change is that the former employee relief is withdrawn; only employer reimbursements can still be paid tax-free if the strict conditions are met. What was deductible before 6 April 2026 Before that date, where the employee was required to work from home, the deductible expenses were limited to add

For a UK limited company, employee entertaining and staff-facing events can be deductible in some cases, but client entertainment is generally disallowed; staff training is usually allowable if it is genuinely work-related. Employee entertaining HMRC’s corporate tax rules disallow business entertainment, but they carve out entertainment of employees as an exception, provided it is wholly and exclusively for the trade and not merely incidental to customer entertainment. So a s

One of the first big decisions for a new UK business 👇 There’s no one-size-fits-all answer — but here’s a simple breakdown to help you choose 👇 🔹 Sole Trader ✔ Quick and low-cost to set up✔ You and the business are the same (simple, but higher personal risk)✔ Pay Income Tax + National Insurance on all profits✔ Simple bookkeeping and Self Assessment⚠️ From April 2026, many sole traders must follow Making Tax Digital (MTD): Digital records Quarterly updates to HMRC MTD-compa

Managing the finances of a small business can feel overwhelming. But with the right approach, bookkeeping becomes a manageable, even enjoyable, part of running your company. Keeping accurate records helps you understand your cash flow, prepare for tax time, and make informed decisions that grow your business. I’m here to share practical, easy-to-follow small business bookkeeping tips that will help you stay organised and stress-free. Practical Small Business Bookkeeping Tips

Running a small business in the UK can be both exciting and challenging. One of the biggest challenges I’ve seen is managing finances smartly. It’s not just about keeping the books balanced; it’s about making your money work for you. When you get financial management right, you reduce stress, increase profits, and set your business up for long-term success. Let me share some practical, easy-to-follow financial management tips that can help you take control of your business fi

When you run a small private limited company, understanding the ins and outs of company car tax can feel like navigating a maze. But it doesn’t have to be complicated. I’m here to break down the essentials of company car tax rules in the UK, so you can make informed decisions that benefit your business and keep your finances on track. Company cars can be a great perk for directors and employees, but they come with tax implications that you need to understand. Let’s dive into

Running a small private limited company can be rewarding but also challenging, especially when it comes to managing your finances. That’s where a chartered accountant steps in. Finding the right professional to support your business is crucial. In this guide, I’ll walk you through everything you need to know about chartered accountants, how they can help your business thrive, and what to expect when working with one. Why Choose Chartered Accountants? Choosing a local accounta

The Chancellor has announced that the tax-free mileage allowance has increased by 10p per mile to 55p per mile 👏 Even better?✅ The increase can be backdated to 6 April 2026. For years, the approved mileage allowance sat at 45p per mile for the first 10,000 business miles, despite rising fuel, insurance and vehicle costs. This increase is a welcome boost for employees and directors using their own car for business journeys. 💷 Worked example: An employee drives 8,000 business

When running a business or managing finances, you might hear the terms accounting profit and taxable profit used interchangeably. Yet, these two concepts are quite different and understanding the distinction is crucial for accurate financial reporting and tax compliance. This post explains what sets accounting profit apart from taxable profit, why the difference matters, and how it affects your business decisions. Financial report displaying accounting and taxable profit ca

⭐ 1. Employee-only Entertainment – Generally Tax Deductible The cost of entertaining employees (staff) is a tax deductible business expense , provided the expenditure is wholly and exclusively for business purposes and not merely incidental to entertaining others such as clients or suppliers. Examples include: Staff Christmas parties Team-building events that are genuinely for employees Sporting or social events solely for staff This exception to the general ban on entertai

1. What MTDIT is MTDIT (Making Tax Digital for Income Tax) is a new way of reporting income tax to HMRC using approved software rather than paper forms or the current online Self-Assessment return alone. Key points: - It applies to individuals with business and/or property income over a set threshold - You must keep digital records of income and expenses in software or spreadsheets that link digitally to HMRC. - Instead of one annual Self Assessment, you send quarterl